Indian stock market: The domestic equity market benchmark indices, Sensex and Nifty 50, are expected to open higher on Monday, following upbeat global market cues on rising hopes of an interest rate cut by the US Federal Reserve.
Asian markets traded higher, while the US stock market rallied last week, with the Dow Jones hitting a record closing high, after US Federal Reserve Chair Jerome Powell’s Jackson Hole speech.
Traders boosted bets on a September rate cut after Powell’s comments, now placing a nearly 90% chance of a reduction, versus about 75% before Powell’s remarks.
On Friday, the Indian stock market ended sharply lower, with the benchmark indices snapping their six-day winning streak.
The Sensex declined 693.86 points, or 0.85%, to close at 81,306.85, while the Nifty 50 settled 213.65 points, or 0.85%, lower at 24,870.10.
In this holiday truncated trading week, investors will focus on key stock market triggers, including the monthly F&O expiry, US Tariff deadline, India GDP data, changes in the Nifty 50 index, trends in crude oil prices and other global and domestic macroeconomic data.
“Maintaining a measured long bias is prudent, with staggered buying on dips in quality names where earnings visibility remains strong. Investors and traders should manage event risks carefully, trimming leveraged positions ahead of key domestic and global data and redeploying selectively as volatility eases,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Monday, tracking Wall Street gains on expectations of interest rate cut by the US Federal Reserve next month. Japan’s Nikkei 225 gained 0.63%, while the Topix index rose 0.53%. South Korea’s Kospi index rallied 0.77%, while the Kosdaq jumped 1.71%. Hong Kong’s Hang Seng index futures indicated a stronger opening.
Gift Nifty Today
Gift Nifty was trading around 24,966 level, a premium of nearly 68 points from the Nifty futures’ previous close, indicating a positive start for the Indian stock market indices.
Wall Street
US stock market ended higher on Friday after US Fed Chair Jerome Powell hinted at a near-term interest-rate cut during his Jackson Hole Symposium speech.
The Dow Jones Industrial Average rallied 846.24 points, or 1.89%, to 45,631.74, while the S&P 500 jumped 96.74 points, or 1.52%, to 6,466.91. The Nasdaq Composite closed 396.22 points, or 1.88%, higher at 21,496.54. For the week, both the S&P and Dow ended higher, while the Nasdaq fell 0.6%.
Nvidia share price rose 1.72%, Amazon shares gained 3.10%, Tesla stock price rallied 6.22% and Apple shares advanced 1.27%. Intel shares price surged 5.5%, Coinbase stock price soared 6.5%, while Intuit shares dropped roughly 5% and Workday stock fell 3%.
Jerome Powell Jackson Hole Speech 2025
US Federal Reserve Chair Jerome Powell, in his Jackson Hole speech, gave feeble hints that “policy adjustments” may occur in the coming months but warned that risks of higher inflation remain. Powell hinted at a near-term interest rate cut at the Fed’s September meeting, although Powell stressed the importance of jobs and inflation data due before then.
Russia-Ukraine War
Russia said Ukraine launched drone attacks that sparked a fire at a nuclear power plant in its western Kursk region overnight. Russian officials said several power and energy facilities were targeted in the overnight strikes.
Dollar
The US dollar attempted to pull itself up from a four-week low on the euro. The US dollar index rose 0.2% against its rivals after dropping to a four-week low. The greenback added 0.2% to $1.1699 per euro. It rose 0.1% to $1.3502 versus sterling and added 0.4% to 147.46 yen.
Gold Prices
Gold prices fell as the dollar crept higher, while increased US interest rate cut expectations lent support to bullion. Spot gold price declined 0.2% to $3,364.25 per ounce, after hitting its highest since August 11 on Friday. US gold futures for December delivery eased 0.3% to $3,409.80.
Crude Oil Prices
Crude oil prices traded higher after Ukraine stepped up attacks on Russia. Brent crude futures rose 0.07% to $67.78, and West Texas Intermediate (WTI) crude futures gained 0.09% to $63.72.
(With inputs from Reuters)
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
